Asian Indices go higher after China cuts it's rates

Asian Indices go higher after China cuts it's rates

Asian Indices go higher after China cuts it's rates

China cuts Loan Prime Rates: 1 year to 3.7% (from 3.8%) & 5 year to 4.6% (from 4.65%)

The People's Bank of China cut its Medium-Term Lending Facility rate to 2.85%

  • from 2.95%
  • injected 700bn yuan with 500bn maturing
  • 1 year MLF
  • first cut since April of 2020

On the 7-day reverse repo today, rate cut to 2.1% from 2.2%

  • 100bn yuan injected today
  • 10bn yuan matured today

On Thursday this week, 20 January, we get 1 year and 5 year Loan Prime Rates set. 

A cut to the MLF will be seen as an indication the LPR rates too could see a cut.

Asian stock go higher after this Bank of China Move Nikkei +1% , Topix +0,89, Kospi +0,49, Hang Seng +2,38% 

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